What is life insurance?

Life Insurance

There are so many insurance products available on the market at the moment. It can be difficult to navigate what they’re all about, and choose the ones that are right for you. This handy guide will tell you all about life insurance, one of the most important insurance products out there. Life insurance, quite simply, is a product that pays out a lump sum if you were to pass away. 

 

Why is it important and how does it work?

Life insurance is so important because it is your way of making sure that your loved ones will be financially protected after your death during the length of the policy. Most premiums are paid either monthly or annually, and they make sure that cash is paid out after your death, to help with bills, funeral costs, a mortgage, or general living costs. There are countless different policies available to suit different needs. You can choose the amount of money to be paid out after your death. Your payment amounts may be affected by things such as your health, whether you smoke, or your age. So, to get the best value policy, it’s a good idea to take out a policy as soon as possible.

 

What are my options?

There are three main ways the money is paid out upon the insured person passing away. Firstly, level term life insurance pays out fixed a lump sum. Secondly, decreasing term life insurance, or mortgage protection insurance, pays out a lump sum which decreases each year in line with your mortgage. Finally, indexed life insurance, which pays out a lump sum that increases over time in line with inflation.  So, your policy can be tailored to you and your loved one’s financial needs.

Life insurance is probably the one insurance product that you and your family can’t afford to miss out on. But, with so many different policies available, there is certain to be one that will suit your needs and budget. Give us a call today, where our knowledgeable consultants will be able to help you!